Its Android partners could start seeing the search giant as a competitor

Google has invested a lot of time and money in building a broad alliance of companies to support Android, its operating system for mobile phones. The Open Handset Alliance now totals 47 members, including hardware, software, and chip companies. Now Google is considering a move to sell its own phone, which risks undermining the coalition. Phonemakers such as Motorola and Samsung, in particular, could begin to see Google as more rival than ally if the search giant starts selling a product head-to-head with theirs. "This could destroy the Open Handset Alliance," says program manager Will Stofega of market researcher IDC.

Google hasn't confirmed it plans to sell its own phone. The company, in a Dec. 12 blog post, only says it has given employees "a device that combines innovative hardware from a partner with software that runs on Android to experiment with new mobile features and capabilities." Still, partners suspect Google will launch a phone next year. It could sell the device directly to customers, but Bloomberg BusinessWeek has learned that Google is also in talks about distribution with T-Mobile USA.